Why You Should Rethink Accepting a Counteroffer
In the recruiting industry, counteroffers have been around since the beginning, but they have gained significant popularity since 2020—a time of unprecedented employee movement, retention challenges for employers, and the rise of remote work as the “norm.”
Perhaps you’re considering a career change. You’ve been with your employer for five years, enjoyed your time there, but feel it might be time for something new. You start casually exploring opportunities, maybe even partnering with a recruiter, and eventually land your next big career move. But just as you’re ready to transition, your current employer presents you with a tempting, hard-to-refuse counteroffer.
“What now?” you ask yourself.
The Counteroffer Dilemma
Let’s expand on this scenario. You’ve been working as an Accountant for the past five years, starting in a staff-level position and working your way up to a senior role. After securing an exciting new opportunity elsewhere, your employer counters with a 20% pay raise, better work-life balance, and promises of a path to management.
At first, this might feel validating— “Wow, my employer truly values me!” But before making a decision, ask yourself:
- Why now?
- Why didn’t they offer this last year during my annual review?
Perhaps your employer didn’t have that opportunity available at the time. Or maybe they never seriously considered your career goals, despite your hard work, market-worth experience, and clear aspirations.
Meanwhile, your prospective new employer has offered you a senior role with a defined path to management within two years—assuming you meet performance expectations. Their starting salary is slightly lower than your current employer’s counteroffer, but it’s still an increase from your current pay. More importantly, it comes with a structured plan for significant annual raises, promotions, and increased responsibilities.
Compare this to your current employer, who has suddenly dangled an offer in front of you—not necessarily to invest in your future, but to avoid the hassle of replacing you.
The Reality of Counteroffers
According to the Professional Risk Managers’ International Association (PRMIA), 80% of employees who accept a counteroffer leave their company within six months, and a staggering 90% depart within a year.
Why?
Because counteroffers are often a short-term retention tactic, not a genuine long-term investment in your career. Employers may increase your salary or make promises to keep you on board, but the underlying issues that led you to seek new opportunities—lack of growth, feeling undervalued, or limited career advancement—often remain unchanged.
The Bottom Line
While accepting a counteroffer may feel like the safe and comfortable choice, it rarely benefits your long-term career. If you were truly valued and deserving of better compensation, career progression, and work-life balance, wouldn’t your employer have recognized that before you decided to leave?
If you’re serious about career growth, it’s often best to move forward with the opportunity that aligns with your future—not the one that only values you when you’re ready to walk away.
